NAGPUR: The Nagpur Municipal Corporation (NMC) has come up with an action plan for increasing revenue from property tax, resolve taxpayers’ problems and provide various facilities to them in 2016-17. Plan includes giving out six monthly property tax bills.

Launched 12 days ago, NMC’s new system that allows people to self-assess the property tax and pay the difference as per new system has flopped. NMC had announced 10% rebate and exemption from 6% interest for those paying difference amount and also property tax of 2015-16. Only 795 of around 4 lakh taxpayers responded between March 19 and 31.

Assistant commissioner of property tax Milind Meshram told TOI a new action plan has been launched to resolve all issues. “Awareness about self-assessment will be spread among taxpayers and we will also encourage them. They will get a rebate of 4%. Property tax demand note will be in two instalments. Efforts are on to distribute first bill by April 31 and give 90 days to taxpayers for paying the tax. Interest of 2% per month will be levied after this. Second bill will be issued before end of September and interest of 2% to be levied from January 1,” he said.

Meshram added the process to end wrong levy of water tax was also on. “Some properties were levied general water tax despite having metered water connections. Some commercial properties situated along residential oness in one structure were also levied general water tax despite having no connection and no consumption. We collected data from the OCW and are stopping wrong levy of general water tax of 15%,” he said.

Meshram also said exemption of general tax in property tax will be extended to current and ex-servicemen. “General body passed a resolution in this regard but it was not implemented. We will provide the facility from 2016-17,” he said.

Meshram said arrears in bills of 1.34 lakh taxpayers for base rate system will also end. “NMC had done revaluation of 1.34 lakh properties as per base rate implemented for 2008-09 and 2009-10. Decision was taken to stop that and go back to rent chart system. A policy decision was taken to adjust difference in next bills. Taxpayers too have not paid as per revised tax. However it was not done and arrears continued to be shown in bills. We will ensure those arrears are deleted the demand notes,” he said.

Meshram also vowed to end the mess in property tax bills. “Many taxpayers used to get arrears despite having paid the tax. It was due to data not being entered. We will ensure no such mistake happens with the help of e-Governance,” he said.

Meshram said target was to complete assessment of new properties pending since long in 2016-17. “A month-wise target has also been set to recover property tax,” he added. NMC’s revenue from property tax is below Rs 200 crore as against expected revenue of Rs 400 crore per annum. Also, taxpayers are left to face serious inconvenience due to mistakes of property tax department. Whether the action plan changes anything will be know by April end.

The new financial year is likely to be a testing time for civic body. The property tax of residential properties is likely to increase by two times while that of commercial properties three times in new tax system. A second demand note to recover difference of 2015-16 tax will also be issued in 2016-17. Most importantly the municipal elections 2017 are set from December and NMC has witnessed a steep reduction in revenue during this time.